Northwest Colorado looks to reinvent itself as coal economy slowly shuts down

All over the country, communities are reeling from the threat of climate change – particularly the closure of coal mines and coal-burning power plants, as a way to dramatically reduce carbon emissions. Closures represent the loss of good-paying jobs, now or in the next few years. 

Rather than abandon impacted communities to dismal fates of decline and abandonment, many state governments are trying to help these communities weather the closure storms. The goal isn’t just survival, but a transition to prosperity. 

Northwest Colorado may be working toward that goal better than most regions in Colorado, the Rocky Mountains, and the nation. 

In 2019, the Colorado state Legislature passed a “just transition” bill that was signed by Gov. Jared Polis, a Democrat. The bill commits the state to help communities transition away from mining or burning coal, to cleaner climate and more diverse economies. Since then, the state has approved more bills and local efforts have evolved. 

When Routt County Commissioner Tim Redmond first heard of the just transition bill, “I was adamant that it must not be from the top down”, but the bottom up, he declared as emcee for the first annual meeting of the Northwest Colorado Development Council (NWCDC), which met in in the northwest Colorado town of Craig Tuesday night, at the Moffat County Fairgrounds. The meeting attracted a wide range of business leaders and development advocates from the tri-county region of Moffat, Routt, and Rio Blanco counties, and their seven communities, as well as regional and state economic development officials. Notably, the meeting attracted the top economic development official in the state: Eve Lieberman, executive director of the Office of Economic Development and International Trade. 

Redmond noted that the tri-county region is scheduled to close four mines and two coal-burning power plants in the next few years, which means a 22 percent loss in tax revenues for the region. The region has: 

• A population of 44,940; 
• A highly skilled workforce of 26,523—of which 2,800 will be available in new jobs once the mines and plants close; 
• An education rate of 93.5 percent with a high school degree or better; 
• 127 degree and certificate programs between two colleges and three campuses; 
• $700 million plus in visitor spending in 2022; and 
• Over 12,000 acres of industrial\ commercial lands. 

In Colorado, there are a total of seven coal mines and 11 power plants that burn coal. Two additional coal-burning power plants that have been closed since 2019. When it comes to closing down coal mines and power plants, Craig and Moffat County is at the epicenter of economic disruption – losing 44 percent of tax income when two mines and a power plant are shuttered. 

That double whammy of losing a mine and power plant doesn’t exist elsewhere in the state. Nearby Hayden has a coal-burning power plant that will down-size and transition to burning beetle-kill timber, and maybe use a solar farm to generate electricity at the current plant. Twenty-mile Coal, south of Hayden, is still mining coal, but is expected to reduce production as more regional power plants shut down by the end of the decade. Reportedly, Twenty-mile has been exploring whether there are potential out-of-state or foreign customers for coal. 

The future of coal mining in Colorado is semi-murky, in that while mines have not announced firm dates of closure, all are working on federal permits that have not been renewed. Indeed, there is a federal moratorium on leasing more coal, so when customers go away and current supplies end, it is widely assumed all mines will close. As far as coal-burning plants, all must convert to non-coal supplies, like natural gas, by 2030.  

Craig actively planning on non-coal future

Over the past decade or so, Craig and Moffat County have been going through the five stages of grief when confronted with news about climate change and the political/environmental drive against coal as a major carbon source and driver of climate change. Denial and anger were found in local politics, followed by bargaining, depression, and acceptance.  

Even today, one can find all five stages in Moffat County bars and coffee shops, but local politicians are working vigorously to come to terms with a foreseeable end of coal. Craig Mayor Chris Nichols is a good example. He spoke at length before the NWCDC audience. 

Nichols emphasized that Craig is reaching out to every conceivable partner in the tri-county area, including governments, Chambers of Commerce, financial institutions, developers, realtors, and non-profits – totaling 22 as of this week. 

“We’ve set up two urban renewal districts, we’re working on more housing, improving our parks, working on public/private partnerships and securing grants and loans,” he said. 

A key element is that Moffat County and Craig are set to receive $70 million in aid from Tri-State, which is shuttering the local power plant and coal mines that supply it, under an agreement filed with the Colorado Public Utilities Commission. The county and city plan to retain the principal, but use the interest to foster economic development and diversification. That $70 million is based on $22 million for the development fund and $48 million in back-stop funds to offset lost tax revenue up to 2038, which can be reduced by state or federal aid. In addition, the state’s Office of Just Transition has a kitty of $30 million, of which a third is pledged to Craig and Moffat County. Tri-State is also seeking bids for a natural-gas plant in the county and has transferred water storage rights from Elkhead Reservoir to the county, once all the power plants are closed. 

“We’ve learned from the hospital, school district, and other entities that housing is in short supply, so we’re acting now,” said Nichols, rather than wait for some miners and power plant workers to leave and open up some housing in the future. Worker retention and training for new jobs, via local colleges, could keep workers in the area. 

Over on 8th Street, a 20-unit townhouse is under development, and should open in December, said Nichols. The project is income-restricted to those who make $66,000 or less annually. And beginning next spring, said Nichols, 96 rental units will be constructed near the mobile transit center.  

On the quality of life front, Craig is investing in local parks and new business developments, such as a distillery, steak house, and meat processing plant that can cater to hunters and local producers. 

Nichols said he’s optimistic that the rail line that runs from Craig, up valley to Steamboat and over to Winter Park, will carry passengers as well as freight. The rail line can carry workers to Steamboat and tourists to Craig hotels. More importantly, said Nichols, a rail line that carries freight would benefit all the new business parks in the tri-county area. 

View from the top

Lieberman was the keynote speaker Tuesday evening. She works with a wide array of departments, agencies and offices that have anything to do with economic development and diversification. Regarding the transition away from coal, she has two new community grants to apply in Rangely, Natarita, Nucla and Norwood, as well as Pueblo County, Fort Morgan County, and Delta, El Paso, Gunnison, La Planta and Larimer Counties.  

“I am inspired by what you do,” she said to her tri-county audience. She pledged that her goal is to help every coal and rural community and small businesses get access to the resources they need to retain, expand and attract business to Colorado. 

Lieberman noted that the Small Business Development Center network has 14 statewide centers, 70 part-time satellite centers and over 300 consultants with tailored services for local regions.  

Lieberman was on a three-day tour that hit Meeker, Rangely, Craig, Hayden and Yampa.

Editor’s note: This story first appeared on the Colorado Times Recorder website.